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8. DETAILS BRECMBC9 11.11.012. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER The following investment requires a table factor for a period beyond the table. Calculate

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8. DETAILS BRECMBC9 11.11.012. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER The following investment requires a table factor for a period beyond the table. Calculate the new table factor and the present value (principal). Use Table 11-2. Round your new table factor to five decimal places and your present value to the nearest cent. Compound Amount Term of Investment (years) Nominal Rate (%) Interest Compounded New Table Factor Present Value $38,000 36 7 annually $ Need Help? Read It TABLE 11-2 Present Value Table (Present Value of $1 at Compound Interest) Periods 2% 3% 4% 5% 6% 7% 8% Periods 1 2 3 4 5 0.99502 0.99007 0.98515 0.98025 0.97537 1% 0.99010 0.98030 0.97059 0.96098 0.95147 0.98522 0.97066 0.95632 0.94218 0.92826 0.98039 0.96117 0.94232 0.92385 0.90573 0.97087 0.94260 0.91514 0.88849 0.86261 0.96154 0.92456 0.88900 0.85480 0.82193 0.95238 0.90703 0.86384 0.82270 0.78353 0.94340 0.89000 0.83962 0.79209 0.74726 0.93458 0.87344 0.81630 0.76290 0.71299 0.92593 0.85734 0.79383 0.73503 0.68058 1 2 3 4 5 6 7 6 7 8 9 10 0.97052 0.96569 0.96089 0.95610 0.94205 0.93272 0.92348 0.91434 0.90529 0.91454 0.90103 0.88771 0.87459 0.86167 0.88797 0.87056 0.85349 0.83676 0.82035 0.83748 0.81309 0.78941 0.76642 0.74409 0.79031 0.75992 0.73069 0.70259 0.67556 0.74622 0.71068 0.67684 0.64461 0.61391 0.70496 0.66506 0.62741 0.59190 0.55839 0.66634 0.62275 0.58201 0.54393 0.50835 0.63017 0.58349 0.54027 0.50025 0.46319 8 9 10 0.95135 11 12 13 14 15 0.94661 0.94191 0.93722 0.93256 0.92792 0.89632 0.88745 0.87866 0.86996 0.86135 0.84893 0.83639 0.82403 0.81185 0.79985 0.80426 0.78849 0.77303 0.75788 0.74301 0.72242 0.70138 0.68095 0.66112 0.64186 0.64958 0.62460 0.60057 0.57748 0.55526 0.58468 0.55684 0.53032 0.50507 0.48102 0.52679 0.49697 0.46884 0.44230 0.41727 0.47509 0.44401 0.41496 0.38782 0.36245 0.42888 0.39711 0.36770 0.34046 0.31524 11 12 13 14 15 16 17 18 19 20 0.92330 0.91871 0.91414 0.90959 0.90506 0.85282 0.84438 0.83602 0.82774 0.81954 0.78803 0.77639 0.76491 0.75361 0.74247 0.72845 0.71416 0.70016 0.68643 0.67297 0.62317 0.60502 0.58739 0.57029 0.55368 0.53391 0.51337 0.49363 0.47464 0.45639 0.45811 0.43630 0.41552 0.39573 0.37689 0.39365 0.37136 0.35034 0.33051 0.31180 0.33873 0.31657 0.29586 0.27651 0.25842 0.29189 0.27027 0.25025 0.23171 0.21455 16 17 18 19 20 21 22 23 24 25 0.90056 0.89608 0.89162 0.88719 0.88277 0.81143 0.80340 0.79544 0.78757 0.77977 0.73150 0.72069 0.71004 0.69954 0.68921 0.65978 0.64684 0.63416 0.62172 0.60953 0.53755 0.52189 0.50669 0.49193 0.47761 0.43883 0.42196 0.40573 0.39012 0.37512 0.35894 0.34185 0.32557 0.31007 0.29530 0.29416 0.27751 0.26180 0.24698 0.23300 0.24151 0.22571 0.21095 0.19715 0.18425 0.19866 0.18394 0.17032 0.15770 0.14602 21 22 23 24 25 Periods 1 2 3 4 5 9% 0.91743 0.84168 0.77218 0.70843 0.64993 10% 0.90909 0.82645 0.75131 0.68301 0.62092 11% 0.90090 0.81162 0.73119 0.65873 0.59345 12% 0.89286 0.79719 0.71178 0.63552 0.56743 13% 0.88496 0.78315 0.69305 0.61332 0.54276 14% 0.87719 0.76947 0.67497 0.59208 0.51937 15% 0.86957 0.75614 0.65752 0.57175 0.49718 16% 0.86207 0.74316 0.64066 0.55229 0.47611 17% 0.85470 0.73051 0.62437 0.53365 0.45611 18% 0.84746 0.71818 0.60863 0.51579 0.43711 Periods 1 2 3 4 5 0.50663 0.48032 6 7 8 0.45235 0.42506 0.59627 0.54703 0.50187 0.46043 0.42241 0.56447 0.51316 0.46651 0.42410 0.38554 0.53464 0.48166 0.43393 0.39092 0.35218 0.45559 0.39964 0.35056 0.30751 0.26974 0.40388 0.36061 0.32197 0.43233 0.37594 0.32690 0.28426 0.24718 0.37616 0.33288 0.29459 0.41044 0.35383 0.30503 0.26295 0.22668 0.38984 0.33320 0.28478 0.24340 0.20804 6 7 8 0.37043 0.31393 0.26604 0.22546 0.19106 9 10 9 10 11 12 13 14 15 0.38753 0.35553 0.32618 0.29925 0.27454 0.35049 0.31863 0.28966 0.26333 0.23939 0.31728 0.28584 0.25751 0.23199 0.20900 0.28748 0.25668 0.22917 0.20462 0.18270 0.26070 0.23071 0,20416 0.18068 0.15989 0.23662 0.20756 0.18207 0.15971 0.14010 0.21494 0.18691 0.16253 0.14133 0.12289 0.19542 0.16846 0.14523 0.12520 0.10793 0.17781 0.15197 0.12989 0.11102 0.09489 0.16192 0.13722 0.11629 0.09855 0.08352 11 12 13 14 15 16 17 18 19 20 0.25187 0.23107 0.21199 0.19449 0.17843 0.21763 0.19784 0.17986 0.16351 0.14864 0.18829 0.16963 0.15282 0.13768 0.12403 0.16312 0.14564 0.13004 0.11611 0.10367 0.14150 0.12522 0.11081 0.09806 0.08678 0.12289 0.10780 0.09456 0.08295 0.07276 0.10686 0.09293 0.08081 0.07027 0.06110 0.09304 0.08021 0.06914 0.05961 0.05139 0.08110 0.06932 0.05925 0.05064 0.04328 0.07078 0.05998 0.05083 0.04308 0.03651 16 17 18 19 20 21 22 23 24 25 0.16370 0.15018 0.13778 0.12640 0.11597 0.13513 0.12285 0.11168 0.10153 0.09230 0.11174 0.10067 0.09069 0.08170 0.07361 0.09256 0.08264 0.07379 0.06588 0.05882 0.07680 0.06796 0.06014 0.05323 0.04710 0.06383 0.05599 0.04911 0.04308 0.03779 0.05313 0.04620 0.04017 0.03493 0.03038 0.04430 0.03819 0.03292 0.02838 0.02447 0.03699 0.03162 0.02702 0.02310 0.01974 0.03094 0.02622 0.02222 0.01883 0.01596 21 22 23 24 25 1 The values in Table 11-2 were generated by the formula PV = rounded to five decimal places, where i is the interest rate per period n is the total number of periods. (1 + i)

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